FCS 340 Exam 3 Questions with Correct Answers

. A policy that pays you back for actual expenses is called a ______________________ plan. -Ans - Hospital indemnity policies . Define deductible -Ans - Amount the insured must pay before they receive before benefits become payable by the insurance company . Explain the following settlement options: a. Lump-sum payment. b. Limited installment payment. c. Life income option. d. Proceeds left with the company. -Ans - Lump sum- Pays face amount of policy in one installment. Limited installment- Provides payments in equal installments for certain amount of years. Life income option- Payments are made as long as beneficiary lives. Proceeds left w/ the company- Left w/ insurance company at specified rate of interest. . If you want to purchase term insurance, what will you will receive -Ans - Life insurance for certain amount of time . Individuals over the age of 65 who are eligible for federal government health plan coverage may also be interested in purchasing more coverage called ________________________. -Ans - Medigap . It is better to fund an IRA, Keogh, or 401(k) before buying an __________________. -Ans - Annuities . Micah has an old beater car and wants to keep her insurance costs down. In order to minimize the financial impact of an accident she may cause, she should, at a minimum, carry which type of insurance? -Ans - Property damage liability A person who is named to receive the benefits from an insurance policy is a _______________________________. -Ans - Beneficiary A policy that supplements your basic personal liability coverage is called an _____________________ policy. -Ans - Umbrella policy a type of insurance in which the insured pays a share of the payment made against a claim. -Ans - Assigned benefits After submitting an offer on a house, the seller may choose to provide a________________, rejecting the submitted offer. -Ans - counteroffe